Global LNG demand to increase by 28 percent by 2022

Global LNG demand will increase by more than 100 bcm compared with 2016 levels to reach 460 billion cubic meters (bcm) in 2022, according to the International Energy Agency’s (IEA) Gas 2017 report.

The IEA said that from 2016 to 2022, China will show the largest LNG import increase with its demand increasing by more than 40 bcm by 2022 from 2016 levels.

According to the IEA, India will also become an emerging LNG importer, capable of generating a meaningful demand increase with impressive growth rates of around 11 percent per year, and its LNG import volume will double from that compared to levels in 2016.

It also noted that Bangladesh, Indonesia and the Philippines are forecast to join the LNG import club and to start importing LNG before 2020.

"Europe’s LNG demand has been and will be lower than the contracted LNG volumes, mainly because of weak gas demand after the euro crisis and competition from pipeline gas. The expiration of LNG contracts in the coming years will allow Europe to rebalance the long positions," the report added.

The IEA stressed that Latin America will also see some LNG demand increase with the addition of Colombia, Haiti, Panama and Uruguay.

It said that by the end of the forecast period, Australia will have the largest LNG export nameplate capacity, 117.8 bcm per year, and the U.S. will become the second largest with 106.7 bcm per year, slightly above Qatar with 104.9 bcm per year.